DXP Enterprises Q3 net income rises 24.2% to $26.9M
Acquisitions contributed $48.8 million of quarterly sales, while operating cash flow was $18.7 million, compared with $34.9 million a year earlier.
Sentiment and the balance of points
Rhea-AI Sentiment reads the wording of the document, how positive or negative its language is on a 1 to 5 scale. The balance of points shown with the takes weighs what the document actually discloses, so the two can disagree, for example when a trial that missed its main goal is described in upbeat language.
Form Type
8-K
Rhea-AI Filing Summary
DXP Enterprises reported third-quarter 2026 sales of $587.2 million, up 14.3% from a year earlier. Net income increased 24.2% to $26.9 million, and diluted earnings per share were $1.64, compared with $1.31. Non-GAAP Adjusted EBITDA was $67.3 million, up 19.0%, with an 11.5% margin versus 11.0%.
Sales included $538.3 million in organic sales and $48.8 million in acquisition sales; DXP had completed five acquisitions through the third quarter. Innovative Pumping Solutions revenue rose 43.3% to $144.1 million, while Service Centers reported $376.6 million and Supply Chain Services $66.4 million.
Operating cash flow was $18.7 million and free cash flow was $14.4 million, compared with $34.9 million and $28.1 million, respectively, a year earlier. Cash was $218.8 million and total debt outstanding was $839.5 million as of September 30, 2026. DXP reported a secured leverage ratio or net debt to EBITDA ratio of 2.30:1.0 and covenant EBITDA of $270.0 million for the last twelve months.
3 points · 0 major0 major · 2 points
How this balance works
Rhea-AI gives every point it takes from this document a weight. Minor counts 1, Moderate 3 and Major 9, so one Major point outweighs several Minor ones. The bar adds up the weights on each side, and when neither side holds more than 65% of the total the balance reads Mixed.
It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.
Rhea-AI Sentiment measures something else, the tone of the wording.
Positive
- Moderate pointSales rose 14.3% year over year to $587.2 million.
- Moderate pointNet income rose 24.2% year over year to $26.9 million.
- Moderate pointAdjusted EBITDA increased 19.0% year over year to $67.3 million.
Negative
- Moderate pointOperating cash flow fell to $18.7 million from $34.9 million.
- Moderate pointFree cash flow was $14.4 million, versus $28.1 million a year earlier.
8-K Event Classification
2 items: 2.02, 9.01
2 items
Item 2.02
Results of Operations and Financial Condition
Financial
Disclosure of earnings results, typically an earnings press release or preliminary financials.
Item 9.01
Financial Statements and Exhibits
Exhibits
Financial statements, pro forma financial information, or exhibit attachments filed with this report.
Key Figures
Sales: $587.2 million
Net income: $26.9 million
Diluted earnings per share: $1.64
+5 more
8 metrics
Sales
$587.2 million
Three months ended September 30, 2026; up 14.3% year over year
Net income
$26.9 million
Three months ended September 30, 2026; up 24.2% year over year
Diluted earnings per share
$1.64
Three months ended September 30, 2026; compared with $1.31 in 2025
Adjusted EBITDA
$67.3 million
Three months ended September 30, 2026; up 19.0% year over year
Operating cash flow
$18.7 million
Three months ended September 30, 2026; compared with $34.9 million in 2025
Free cash flow
$14.4 million
Three months ended September 30, 2026; compared with $28.1 million in 2025
Cash
$218.8 million
As of September 30, 2026
Total debt outstanding
$839.5 million
As of September 30, 2026
Key Terms
Adjusted EBITDA, Free Cash Flow, Organic Sales, Acquisition Sales, +1 more
5 terms
Adjusted EBITDA financial
"Adjusted EBITDA was $67.3 million compared to $56.5 million"
Adjusted EBITDA is a way companies measure how much money they make from their core operations, like running a business, by removing certain costs or income that aren’t part of regular business activities. It helps investors see how well a company is doing without distractions from unusual expenses or gains, making it easier to compare companies or track performance over time.
Free Cash Flow financial
"free cash flow as net cash (used in) provided by operating activities less purchases of property and equipment"
Free cash flow is the amount of money a company has left over after paying all its expenses and investing in its business, like buying equipment or updating facilities. It shows how much cash is available to reward shareholders, pay down debt, or save for future growth. This helps investors understand if a company is financially healthy and able to grow.
Organic Sales financial
"excluded in our calculation of Organic Sales"
Organic sales are the change in a company’s revenue that comes from its existing business operations, excluding effects of acquisitions, divestitures, and currency swings. Think of it like measuring how much a garden grows from the plants you already tended, rather than adding new pots; investors use organic sales to judge whether demand and core business performance are genuinely improving or if growth is driven by one‑time deals or accounting shifts.
Acquisition Sales financial
"Acquisition Sales are sales from acquisitions that have been under our ownership for less than twelve months"
covenant EBITDA financial
"with a covenant EBITDA of $270.0 million"
Covenant EBITDA is the version of a company’s earnings before interest, taxes, depreciation and amortization that is written into a loan or bond agreement as the official measure of cash-generating ability. Lenders use it like a contract thermometer — if the number falls below agreed thresholds, the borrower can be deemed in breach, which may trigger penalties, higher rates, or acceleration of repayment, so investors watch it as a risk signal.
Earnings Snapshot
Sales: $587.2 million · Guidance included
Third quarter ended September 30, 2026
Sales
$587.2 million
up 14.3% year over year
Net income
$26.9 million
up 24.2% year over year
Diluted earnings per share
$1.64
compared with $1.31 in the third quarter of 2025
Adjusted EBITDA
$67.3 million
up 19.0% year over year
Free cash flow
$14.4 million
compared with $28.1 million in the third quarter of 2025
Guidance
We expect to finish fiscal year 2026 strong with momentum going into fiscal year 2027.
FAQ
AI-generated questions and answers. How Rhea-AI works. Not financial advice.
What were DXPE's sales in the third quarter of 2026?
DXP Enterprises reported $587.2 million in third-quarter 2026 sales, up 14.3% from $513.7 million in the third quarter of 2025.
How much net income did DXPE report for Q3 2026?
DXP reported $26.9 million in net income for the third quarter of 2026, compared with $21.6 million a year earlier. Diluted earnings per share were $1.64, compared with $1.31.
What were DXPE's operating income margins by segment in Q3 2026?
Service Centers had a 14.8% operating income margin, Innovative Pumping Solutions had a 16.3% margin, and Supply Chain Services had a 9.0% margin in the third quarter ended September 30, 2026.
How does DXPE define free cash flow?
DXP defines free cash flow as net cash provided by operating activities less purchases of property and equipment. It reported $14.4 million for the third quarter ended September 30, 2026.
AI-generated analysis. How Rhea-AI works. Not financial advice.
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 8-K
CURRENT REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
Date of Report (date of earliest event reported): November 5, 2026
Commission file number 0-21513
(Exact name of registrant as specified in its charter)
| (State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification Number) | ||||
| | |||||||||||||||||
| (Address of principal executive offices) | (Registrant’s telephone number, including area code) | ||||||||||||||||
_________________________
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
Securities registered pursuant to Section 12(b) of the Exchange Act:
| Title of Each Class | Trading Symbol | Name of Exchange on which Registered | ||||||
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ⃞
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
ITEM 2.02 RESULTS OF OPERATIONS AND FINANCIAL CONDITION
The following information is furnished pursuant to Regulation FD.
On November 5, 2026 , DXP Enterprises, Inc., issued a press release announcing financial results for the third quarter ended September 30, 2026. A copy of the release is furnished herewith as Exhibit 99.1, and incorporated herein by reference. Such exhibit (i) is furnished pursuant to Item 2.02 of Form 8-K, (ii) is not to be considered "filed" under the Securities Exchange Act of 1934, as amended (the "Exchange Act") and (iii) shall not be incorporated by reference into any previous or future filings made by or to be made by the Company with the Securities and Exchange Commission under the Securities Act of 1933, as amended (the "Securities Act"), or the Exchange Act.
ITEM 9.01 FINANCIAL STATEMENTS AND EXHIBITS
(d) Exhibits.
99.1 Press Release dated November 5, 2026 announcing the earnings results for the third quarter ended September 30, 2026.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| DXP ENTERPRISES, INC. | ||||||||
| (Registrant) | ||||||||
| By: | /s/ Kent Yee | |||||||
| Kent Yee | ||||||||
| Senior Vice President/Finance and Chief Financial Officer | ||||||||
| By: | /s/ David Molero Santos | |||||||
| David Molero Santos | ||||||||
| Vice President/Finance and Chief Accounting Officer | ||||||||
| Dated: | November 5, 2026 | |||||||
INDEX TO EXHIBITS
Introductory Note: The following exhibit is furnished pursuant to Item 2.02 of Form 8-K and is not to be considered “filed” under the Exchange Act and shall not be incorporated by reference into any of the Company’s previous or future filings under the Securities Act or the Exchange Act.
| Exhibit No. | Description | ||||
| 99.1 | Press Release dated November 5,, 2026 announcing the earnings results for the third quarter ended September 30, 2026 | ||||
 | NEWS RELEASE CONTACT: Kent Yee Senior Vice President, CFO 713-996-4700 www.dxpe.com | |||||||
DXP ENTERPRISES, INC. REPORTS THIRD QUARTER 2026 RESULTS
•$218.8 million in cash
•$587.2 million in sales, a 14.3 percent year-over-year increase
•GAAP diluted EPS of $1.64
•$67.3 million in earnings before interest, taxes, depreciation & amortization and other non-cash charges ("Adjusted EBITDA")
•Completed five acquisitions through Q3
Houston, TX – November 5, 2026 – DXP Enterprises, Inc. ("DXP" or the "Company") (NASDAQ: DXPE) today announced financial results for the third quarter ended September 30, 2026. The following are results for the three months ended September 30, 2026, compared to the three months ended September 30, 2025. A reconciliation of the non-GAAP financial measures can be found in the back of this press release.
Third Quarter 2026 Financial Highlights:
•Sales increased 14.3 percent to $587.2 million compared to $513.7 million for the third quarter of 2025.
•Net income increased 24.2 percent to $26.9 million, compared to $21.6 million for the third quarter of 2025.
•Earnings per diluted share was $1.64 based upon 16.4 million diluted shares, compared to $1.31 earnings per diluted share in the third quarter of 2025, based on 16.5 million diluted shares.
•Adjusted EBITDA was $67.3 million compared to $56.5 million for the third quarter of 2025, an increase of 19.0 percent. Adjusted EBITDA as a percentage of sales, or Adjusted EBITDA margins, were 11.5 percent and 11.0 percent, respectively.
•Cash flow from operating activities was $18.7 million, and
•Free Cash Flow (cash flow from operating activities less capital expenditures) for the third quarter was $14.4 million
Business segment financial highlights:
•Service Centers’ revenue for the third quarter was $376.6 million, an increase of 7.6 percent year-over-year, with a 14.8 percent operating income margin.
•Innovative Pumping Solutions’ revenue for the third quarter was $144.1 million, an increase of 43.3 percent year-over-year, with a 16.3 percent operating income margin.
•Supply Chain Services’ revenue for the third quarter was $66.4 million, an increase of 5.5 percent year-over-year, with a 9.0 percent operating income margin.
David R. Little, Chairman and Chief Executive Officer commented, "DXP delivered a strong third quarter, with sales of $587.2 million, diluted earnings per share of $1.64, Adjusted EBITDA of $67.3 million, and free cash flow of $14.4 million. Our results reflect continued execution of our growth strategy, solid organic performance, contribution from recent acquisitions, and sustained strength in EBITDA margins. During the quarter, organic sales were $538.3 million, while acquisitions contributed $48.8 million in sales. We also saw continued strength across our business segments, with Service Centers generating $376.6 million in sales, Innovative Pumping Solutions generating $144.1 million, and Supply Chain Services generating $66.4 million. We remain focused on executing our strategic initiatives, integrating and pursuing acquisitions, generating strong cash flow, and positioning the Company for continued growth in 2027. Overall, we are proud of the progress DXP continues to make and grateful to our customers, suppliers, shareholders, and all of our DXPeople."
Kent Yee, Chief Financial Officer and Senior Vice President, remarked, "Our third quarter sales and adjusted EBITDA continue to show strength and resilience as we march upwards and set a new sales high watermark. Specifically, this quarter reflects continued execution of our strategic goals and the confidence we have in our balanced mix of business, tremendous teams, and a strong balance sheet to support our key initiatives. DXP performed well in the third quarter with $587.2 million in sales. We closed five acquisitions through the third quarter. Total debt outstanding as of September 30, 2026, was $839.5 million. DXP’s secured leverage ratio or net debt to EBITDA ratio was 2.30:1.0 with a covenant EBITDA of $270.0 million for the last twelve months ending September 30, 2026. We expect to finish fiscal year 2026 strong with momentum going into fiscal year 2027."
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| NEWS RELEASE CONTACT: Kent Yee Senior Vice President, CFO 713-996-4700 www.dxpe.com | |||||||
Conference Call Information
DXP Enterprises, Inc. management will host a conference call, November 5, 2026, at 10:30 a.m. Central Time, to discuss the Company’s financial results. The conference call may be accessed by going to https://ir.dxpe.com.
Interested investors and other parties can listen to a webcast of the live conference call by logging onto the Investor Relations section of the Company's website at https://ir.dxpe.com. The online replay will be available on the same website immediately following the call. A slide presentation highlighting the Company’s results and key performance indicators will also be available on the Investor Relations section of the Company’s website.
To learn more about DXP Enterprises, Inc., please visit the Company's website at https://www.dxpe.com.
About DXP Enterprises, Inc.
DXP Enterprises, Inc. is a leading products and service distributor that adds value and total cost savings solutions to industrial customers throughout North America. DXP provides innovative pumping solutions, supply chain services and maintenance, repair, operating and production ("MROP") services that emphasize and utilize DXP’s vast product knowledge and technical expertise in rotating equipment, bearings, power transmission, metal working, industrial supplies and safety products and services. DXP's breadth of MROP products and service solutions allows DXP to be flexible and customer-driven, creating competitive advantages for our customers. DXP’s business segments include Service Centers, Innovative Pumping Solutions and Supply Chain Services. For more information, go to www.dxpe.com.
Non-GAAP Financial Measures
DXP supplements reporting of net income with certain non-GAAP measurements, including EBITDA, Adjusted EBITDA, EBITDA Margin, Adjusted EBITDA Margin, Free Cash Flow, Adjusted Net Income, and Adjusted Diluted EPS. This supplemental information should not be considered in isolation or as a substitute for the unaudited GAAP measurements. Additional information regarding EBITDA, Adjusted EBITDA, EBITDA Margin, Adjusted EBITDA Margin, Free Cash Flow, Adjusted Net Income, Adjusted Diluted EPS, and net debt referred to in this press release are included below under "Unaudited Reconciliation of Non-GAAP Financial Information".
The Company believes EBITDA provides additional information about: (i) operating performance, because it assists in comparing the operating performance of the business, as it removes the impact of non-cash depreciation and amortization expense as well as items not directly resulting from core operations such as interest expense and income taxes and (ii) the performance and the effectiveness of operational strategies. Additionally, EBITDA performance is a component of a measure of the Company’s financial covenants under its credit facilities. Furthermore, some investors use EBITDA as a supplemental measure to evaluate the overall operating performance of companies in the industry. Management believes that some investors’ understanding of performance is enhanced by including this non-GAAP financial measure as a reasonable basis for comparing ongoing results of operations. By providing this non-GAAP financial measure, together with a reconciliation to its most directly comparable GAAP financial measure, the Company believes it is enhancing investors’ understanding of the business and results of operations, as well as assisting investors in evaluating how well the Company is executing strategic initiatives. Free Cash Flow reconciles to the most directly comparable GAAP financial measure of cash flows from operations as provided below. We believe Free Cash Flow is an important liquidity metric because it measures, during a given period, the amount of cash generated that is available to fund acquisitions, make investments, repay debt obligations, repurchase shares of the Company's common stock, and for certain other activities. Adjusted Net Income reconciles to the most directly comparable GAAP financial measure of Net Income as provided below. We believe Adjusted Net Income is important because it provides the investor with further clarity around Net Income excluding the impact of unique or one-time items during the respective period.
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| NEWS RELEASE CONTACT: Kent Yee Senior Vice President, CFO 713-996-4700 www.dxpe.com | |||||||
Information Related to Forward-Looking Statements
The Private Securities Litigation Reform Act of 1995 provides a “safe-harbor” for forward-looking statements. Certain information included in this press release (as well as information included in oral statements or other written statements made by or to be made by the Company) contains statements that are forward-looking. These forward-looking statements include, without limitation, those about the Company’s expectations regarding the Company's expectations regarding the filing of the Form 10-Q; the description of the anticipated changes in the Company's consolidated balance sheet and the results of operations and the Company's assessment of the impact of such anticipated changes; the Company’s business, the Company’s future profitability, cash flow, liquidity, and growth. Such forward-looking information involves important risks and uncertainties that could significantly affect anticipated results in the future; and accordingly, such results may differ from those expressed in any forward-looking statement made by or on behalf of the Company. These risks and uncertainties include, but are not limited to: the effectiveness of management’s strategies and decisions; our ability to implement our internal growth and acquisition growth strategies; general economic and business conditions specific to our primary customers; changes in government regulations; our ability to effectively integrate businesses we may acquire; new or modified statutory or regulatory requirements; availability of materials and labor; inability to obtain or delay in obtaining government or third-party approvals and permits; non-performance by third parties of their contractual obligations; unforeseen hazards such as weather conditions, acts of war or terrorist acts and the governmental or military response thereto; cyber-attacks adversely affecting our operations; other geological, operating and economic considerations and declining prices and market conditions, including supply or demand for maintenance, repair and operating products, equipment and service; inability of the Company or its independent auditors to complete the work necessary in order to file the Form 10-Q in the expected time frame; unanticipated changes to the Company's operating results in the Form 10-Q as filed or in relation to prior periods, including as compared to the anticipated changes stated here; unanticipated impact of such changes and its materiality; ability to obtain needed capital, dependence on existing management, leverage and debt service, domestic or global economic conditions, ability to manage changes and the continued health or availability of management personnel and changes in customer preferences and attitudes. In some cases, you can identify forward-looking statements by terminology such as, but not limited to, “may,” “will,” “should,” “intend,” “expect,” “plan,” “anticipate,” “believe,” “estimate,” “predict,” “potential,” “goal,” or “continue” or the negative of such terms or other comparable terminology. More information on these risks and other potential factors that could affect the Company’s business and financial results is included in the Company’s filings with the Securities and Exchange Commission, including in the “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” sections of the Company’s most recently filed periodic reports on Form 10-K and Form 10-Q and subsequent filings. The Company assumes no obligation to update any forward-looking statements or information, which speak as of their respective dates.
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| NEWS RELEASE CONTACT: Kent Yee Senior Vice President, CFO 713-996-4700 www.dxpe.com | |||||||
DXP ENTERPRISES, INC. AND SUBSIDIARIES
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
($ thousands, except share amounts)
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||
| Sales | $ | 587,180 | $ | 513,724 | $ | 1,685,299 | $ | 1,488,975 | |||||||||||||||
| Cost of sales | 406,672 | 352,465 | 1,153,118 | 1,019,638 | |||||||||||||||||||
| Gross profit | 180,508 | 161,259 | 532,181 | 469,337 | |||||||||||||||||||
| Selling, general and administrative expenses | 128,046 | 117,561 | 381,752 | 339,138 | |||||||||||||||||||
| Income from operations | 52,462 | 43,698 | 150,429 | 130,199 | |||||||||||||||||||
Interest expense | 16,949 | 14,894 | 50,223 | 44,298 | |||||||||||||||||||
| Other (income) expense, net | (950) | (648) | (2,603) | (2,320) | |||||||||||||||||||
| Income before income taxes | 36,463 | 29,452 | 102,809 | 88,221 | |||||||||||||||||||
| Provision for income taxes | 9,593 | 7,821 | 27,253 | 22,389 | |||||||||||||||||||
| Net income | 26,870 | 21,631 | 75,556 | 65,832 | |||||||||||||||||||
| Preferred stock dividend | 23 | 23 | 68 | 68 | |||||||||||||||||||
| Net income attributable to common shareholders | $ | 26,847 | $ | 21,608 | $ | 75,488 | $ | 65,764 | |||||||||||||||
| Net income | $ | 26,870 | $ | 21,631 | $ | 75,556 | $ | 65,832 | |||||||||||||||
| Foreign currency translation adjustments | (118) | (709) | (3,073) | 1,940 | |||||||||||||||||||
| Comprehensive income | $ | 26,752 | $ | 20,922 | $ | 72,483 | $ | 67,772 | |||||||||||||||
| Earnings per share: | |||||||||||||||||||||||
| Basic | $ | 1.73 | $ | 1.38 | $ | 4.87 | $ | 4.19 | |||||||||||||||
| Diluted | $ | 1.64 | $ | 1.31 | $ | 4.62 | $ | 3.98 | |||||||||||||||
| Weighted average common shares outstanding: | |||||||||||||||||||||||
| Basic | 15,513 | 15,686 | 15,517 | 15,693 | |||||||||||||||||||
| Diluted | 16,353 | 16,526 | 16,357 | 16,533 | |||||||||||||||||||
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| NEWS RELEASE CONTACT: Kent Yee Senior Vice President, CFO 713-996-4700 www.dxpe.com | |||||||
DXP ENTERPRISES, INC. AND SUBSIDIARIES
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
($ thousands, except share amounts)
| September 30, 2026 | December 31, 2025 | ||||||||||
| ASSETS | |||||||||||
| Current assets: | |||||||||||
| Cash | $ | 218,834 | $ | 303,783 | |||||||
| Accounts receivable, net of allowance of $4,163 and $3,995, respectively | 472,409 | 397,502 | |||||||||
| Inventories | 124,100 | 108,144 | |||||||||
| Costs and estimated profits in excess of billings | 68,504 | 53,855 | |||||||||
| Prepaid expenses and other current assets | 39,674 | 47,033 | |||||||||
| Total current assets | 923,521 | 910,317 | |||||||||
| Property and equipment, net | 122,023 | 114,822 | |||||||||
| Goodwill | 573,034 | 494,561 | |||||||||
| Other intangible assets, net | 114,192 | 81,351 | |||||||||
| Operating lease right of use assets, net | 72,680 | 74,709 | |||||||||
| Other long-term assets | 12,279 | 9,395 | |||||||||
| Total assets | $ | 1,817,729 | $ | 1,685,155 | |||||||
| LIABILITIES AND EQUITY | |||||||||||
| Current liabilities: | |||||||||||
| Current maturities of debt | $ | 8,480 | $ | 8,580 | |||||||
| Trade accounts payable | 123,767 | 116,765 | |||||||||
| Accrued wages and benefits | 62,164 | 51,180 | |||||||||
| Customer advances | 15,872 | 15,460 | |||||||||
| Billings in excess of costs and estimated profits | 27,735 | 15,689 | |||||||||
| Short-term operating lease liabilities | 20,042 | 19,038 | |||||||||
| Other current liabilities | 54,298 | 45,769 | |||||||||
| Total current liabilities | 312,358 | 272,481 | |||||||||
| Long-term debt, net of unamortized debt issuance costs and discounts | 814,736 | 818,476 | |||||||||
| Long-term operating lease liabilities | 54,682 | 57,509 | |||||||||
| Other long-term liabilities | 65,539 | 38,250 | |||||||||
| Total long-term liabilities | 934,957 | 914,235 | |||||||||
| Total liabilities | 1,247,315 | 1,186,716 | |||||||||
Commitments and Contingencies | |||||||||||
| Shareholders' equity: | |||||||||||
| Series A preferred stock, $1.00 par value; 1,000,000 shares authorized | 1 | 1 | |||||||||
| Series B preferred stock, $1.00 par value; 1,000,000 shares authorized | 15 | 15 | |||||||||
| Common stock, $0.01 par value, 100,000,000 shares authorized; 20,407,043 issued and 15,516,986 outstanding at September 30, 2026 and 20,403,647 issued and 15,513,590 outstanding at December 31, 2025 | 204 | 204 | |||||||||
| Additional paid-in capital | 220,241 | 220,681 | |||||||||
| Retained earnings | 553,745 | 478,257 | |||||||||
| Accumulated other comprehensive loss | (33,680) | (30,607) | |||||||||
| Treasury stock, at cost 4,890,057 and 4,890,057 shares, respectively | (170,112) | (170,112) | |||||||||
| Total DXP Enterprises, Inc. equity | 570,414 | 498,439 | |||||||||
| Total liabilities and equity | $ | 1,817,729 | $ | 1,685,155 | |||||||
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| NEWS RELEASE CONTACT: Kent Yee Senior Vice President, CFO 713-996-4700 www.dxpe.com | |||||||
SEGMENT DATA
($ thousands, unaudited)
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
| Sales | 2026 | 2025 | 2026 | 2025 | |||||||||||||||||||
| Service Centers | $ | 376,637 | $ | 350,179 | $ | 1,082,511 | $ | 1,016,985 | |||||||||||||||
| Innovative Pumping Solutions | 144,115 | 100,551 | 405,514 | 280,273 | |||||||||||||||||||
| Supply Chain Services | 66,428 | 62,994 | 197,274 | 191,717 | |||||||||||||||||||
| Total Sales | $ | 587,180 | $ | 513,724 | $ | 1,685,299 | $ | 1,488,975 | |||||||||||||||
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
| Operating Income | 2026 | 2025 | 2026 | 2025 | |||||||||||||||||||
| Service Centers | $ | 55,614 | $ | 51,346 | $ | 159,454 | $ | 148,561 | |||||||||||||||
| Innovative Pumping Solutions | 23,444 | 18,399 | 71,777 | 50,448 | |||||||||||||||||||
| Supply Chain Services | 5,998 | 5,304 | 18,896 | 16,096 | |||||||||||||||||||
Total Segments Operating Income | $ | 85,056 | $ | 75,049 | $ | 250,127 | $ | 215,105 | |||||||||||||||
RECONCILIATION OF OPERATING INCOME FOR REPORTABLE SEGMENTS
($ thousands, unaudited)
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||
| Income from operations for reportable segments | $ | 85,056 | $ | 75,049 | $ | 250,127 | $ | 215,105 | |||||||||||||||
| Adjustment for: | |||||||||||||||||||||||
Amortization of intangibles | 6,899 | 5,370 | 20,714 | 16,053 | |||||||||||||||||||
| Corporate expenses | 25,695 | 25,981 | 78,984 | 68,853 | |||||||||||||||||||
| Income from operations | $ | 52,462 | $ | 43,698 | $ | 150,429 | $ | 130,199 | |||||||||||||||
| Interest expense | 16,949 | 14,894 | 50,223 | 44,298 | |||||||||||||||||||
| Other (income) expense, net | (950) | (648) | (2,603) | (2,320) | |||||||||||||||||||
| Income before income taxes | $ | 36,463 | $ | 29,452 | $ | 102,809 | $ | 88,221 | |||||||||||||||
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| NEWS RELEASE CONTACT: Kent Yee Senior Vice President, CFO 713-996-4700 www.dxpe.com | |||||||
RECONCILIATION OF NON-GAAP FINANCIAL INFORMATION
($ thousands, unaudited)
We define and calculate EBITDA as Net income attributable to DXP Enterprises, Inc., plus interest, taxes, depreciation, and amortization. We define and calculate Adjusted EBITDA as Net income attributable to DXP Enterprises, Inc., plus interest, taxes, depreciation, and amortization plus stock-based compensation expense and all other non-cash charges, adjustments, and non-recurring items. We identify the impact of all other non-cash charges, adjustments and non-recurring items because we believe these items do not directly reflect our underlying operations.
We define and calculate EBITDA Margin as EBITDA divided by sales. We define and calculate Adjusted EBITDA Margin as Adjusted EBITDA divided by sales.
The following table sets forth the reconciliation of EBITDA, EBITDA Margin, Adjusted EBITDA and Adjusted EBITDA Margin to the most comparable U.S. GAAP financial measure (in thousands):
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||
Income before income taxes | $ | 36,463 | $ | 29,452 | $ | 102,809 | $ | 88,221 | |||||||||||||||
Plus: Interest expense | 16,949 | 14,894 | 50,223 | 44,298 | |||||||||||||||||||
Plus: Depreciation and amortization | 12,355 | 9,920 | 36,609 | 28,544 | |||||||||||||||||||
| EBITDA | $ | 65,767 | $ | 54,266 | $ | 189,641 | $ | 161,063 | |||||||||||||||
| Plus: stock compensation expense | 1,489 | 1,478 | 4,757 | 4,278 | |||||||||||||||||||
Plus: other non-recurring items(1) | — | 757 | 1,046 | 992 | |||||||||||||||||||
| Adjusted EBITDA | $ | 67,256 | $ | 56,501 | $ | 195,444 | $ | 166,333 | |||||||||||||||
| Operating Income Margin | 8.9 | % | 8.5 | % | 8.9 | % | 8.7 | % | |||||||||||||||
Net Income Margin | 4.6 | % | 4.2 | % | 4.5 | % | 4.4 | % | |||||||||||||||
| EBITDA Margin | 11.2 | % | 10.6 | % | 11.3 | % | 10.8 | % | |||||||||||||||
| Adjusted EBITDA Margin | 11.5 | % | 11.0 | % | 11.6 | % | 11.2 | % | |||||||||||||||
(1) Other non-recurring items include non-recurring costs not related to continuing business operations. | |||||||||||||||||||||||
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| NEWS RELEASE CONTACT: Kent Yee Senior Vice President, CFO 713-996-4700 www.dxpe.com | |||||||
We define and calculate organic sales to include locations and acquisitions under our ownership for at least twelve months. "Acquisition Sales" are sales from acquisitions that have been under our ownership for less than twelve months and are excluded in our calculation of Organic Sales.
"Business Days" are days of the week, excluding Saturdays, Sundays, and holidays, that our locations are open during the year. Depending on the location and the season, our branches may be open on Saturdays and Sundays; however, for consistency, those days have been excluded from the calculation of Business Days.
We define and calculate Sales per Business Day as sales divided by the number of Business Days in the relevant reporting period.
We define and calculate Organic Sales per Business Day as Organic Sales divided by the number of Business Days in the relevant reporting period.
The following table sets forth the reconciliation of Acquisition Sales, Organic Sales and Organic Sales per Business Day to the most comparable U.S. GAAP financial measure (in thousands):
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||
| Sales by Business Segment | |||||||||||||||||||||||
| Service Centers | $ | 376,637 | $ | 350,179 | $ | 1,082,511 | $ | 1,016,985 | |||||||||||||||
| Innovative Pumping Solutions | 144,115 | 100,551 | 405,514 | 280,273 | |||||||||||||||||||
| Supply Chain Services | 66,428 | 62,994 | 197,274 | 191,717 | |||||||||||||||||||
| Total DXP Sales | $ | 587,180 | $ | 513,724 | $ | 1,685,299 | $ | 1,488,975 | |||||||||||||||
| Acquisition Sales | $ | 48,832 | $ | 18,403 | $ | 139,425 | $ | 74,120 | |||||||||||||||
| Organic Sales | $ | 538,348 | $ | 495,321 | $ | 1,545,874 | $ | 1,414,855 | |||||||||||||||
| Business Days | 64 | 64 | 190 | 190 | |||||||||||||||||||
| Sales per Business Day | $ | 9,175 | $ | 8,027 | $ | 8,870 | $ | 7,837 | |||||||||||||||
| Organic Sales per Business Day | $ | 8,412 | $ | 7,739 | $ | 8,136 | $ | 7,447 | |||||||||||||||
We define and calculate free cash flow as net cash (used in) provided by operating activities less purchases of property and equipment.
The following table sets forth the reconciliation of Free Cash Flow to the most comparable GAAP financial measure (in thousands):
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||
| Net cash from operating activities | $ | 18,686 | $ | 34,886 | $ | 80,641 | $ | 56,505 | |||||||||||||||
| Less: purchases of property and equipment | (4,238) | (6,740) | (10,153) | (37,000) | |||||||||||||||||||
| Free Cash Flow | $ | 14,448 | $ | 28,146 | $ | 70,488 | $ | 19,505 | |||||||||||||||
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| NEWS RELEASE CONTACT: Kent Yee Senior Vice President, CFO 713-996-4700 www.dxpe.com | |||||||
The following table is a reconciliation of adjusted net income attributable to DXP Enterprises, Inc., a non-GAAP financial measure, to net income, calculated and reported in accordance with U.S. GAAP (in thousands):
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||
Net Income | $ | 26,870 | $ | 21,631 | $ | 75,556 | $ | 65,832 | |||||||||||||||
One-time non-recurring costs | — | 757 | 1,046 | 992 | |||||||||||||||||||
Adjustment for taxes | — | (201) | (278) | (252) | |||||||||||||||||||
Adjusted Net Income | $ | 26,870 | $ | 22,187 | $ | 76,324 | $ | 66,572 | |||||||||||||||
Weighted average common shares outstanding | |||||||||||||||||||||||
| Diluted | 16,353 | 16,526 | 16,357 | 16,533 | |||||||||||||||||||
| Diluted Earnings per Share | $ | 1.64 | $ | 1.31 | $ | 4.62 | $ | 3.98 | |||||||||||||||
| Adjusted Diluted Earnings per Share | $ | 1.64 | $ | 1.34 | $ | 4.67 | $ | 4.03 | |||||||||||||||
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